Almost three in ten Scots (28%) aged over-60, equating to 343,500 people, still have grown-up children relying on them in some way according to research from Age Scotland Enterprises.
This underlines the wider, cross-generational consequences of the financial challenges facing young adults.
Seventeen percent of over 60s have adult dependents living with them in the family home – 8% of them don’t even get rent or contributions towards bills from their children who haven’t flown the nest.
A further 11% of 60+ Scots provide financial support to their adult children who have left home in the form of contributions towards car tax, insurance or first home deposits.
Additionally 36% of the same age group admitted they would not consider downsizing for family related reasons – either because they want to pass on a legacy to their offspring (12%) or that it’s the family home (24%).
Almost half of those in this age group who have considered moving (43%) say their home is no longer suitable for them either because of health and mobility reasons (11%) or because it is too big (32%).
Logan Steele, General Manager of Age Scotland Enterprises, said: “This research begs the question – is Scotland’s older generation being trapped in their family home due to commitments to their adult children, who themselves are facing financial challenges?
“As people near retirement they have generally paid off the majority of their mortgage and are seeking to minimise their outgoings. It is understandable that older people will consider their children’s as well as their own futures when weighing up the practicalities of later life. However, it is essential that they strike the right balance and don’t get drawn into a financial situation that impacts their wider choices.
“There is also the practical question about the additional stress on the older generation’s existing financial commitments. There is no doubt that an adult child will have possessions of value in the home they share with their parents. Are these covered by the home insurance and who is picking up the tab if they are? There are many such areas to consider that could potentially have more financial impact.”
Overview of research findings:
- 28% of over 60s have adult kids relying on them either financially or because they live with them (equates to 343,500Scots according to the census**)
- 17% of over 60s have adult kids living with them:
- 4.3% paying share rent and bills
- 5.6% contributing towards ‘housekeeping’
- 7.8% living rent-free & bill-free
- 24% of over 60s’ adult kids rely on them financially to a degree
- 10.8% get financial support for likes of car tax, first home deposit
- 5.6% just contribute towards ‘housekeeping’
- 7.8% living rent-free & bill-free
- 36% admitted they would not consider downsizing for family related reasons – either because they want to pass on a legacy to their offspring (12%) or that it’s the family home (24%)
- 13% would consider downsizing but ‘practicalities’ are holding them back.
- 6% of over 60s Scots, who have considered moving have done so because of the cost of living in their current home (council tax, heating, etc)
- 11% who have considered moving say that their home is no longer suitable for them because of health or mobility issues
- 32% who have considered moving say their home is now too big.
Despite the increasing confidence in the economy, a quarter (25%) of over 60s, 306,700 people, are concerned about making ends meet.
Logan Steele commented: “We must recognise that people are not only worried about making sure their money goes further – they’re anxious about understanding and managing their finances. It is important that people feel confident enough to take control of their finances and reach out to those able to help them.”
